Bitcoin Retraces from Daily Highs, But Holds Above Key Support Level

Bitcoin and the aggregated crypto markets incurred an explosive rally yesterday evening that sent BTC’s price skyrocketing from lows of $7,400 to highs of well over $10,000, which marked one of the largest movements that the cryptocurrency has incurred in the past decade. Analysts are now noting that Bitcoin has been able to hold above a key support level despite retracing significantly from its daily highs, and they are also noting that it may dip slightly lower before continuing to extend its upwards momentum.

Bitcoin Surges to Over $10,000 in Massive Rally Before Retracing

At the time of writing, Bitcoin is trading up over 16% at its of $9,250, which marks a notable surge from its recent lows of $7,400 that were set yesterday morning.

This massive surge allowed Bitcoin’s price to surge as high as $10,300 before its bulls quickly lost their strength and led the cryptocurrency to drop as low as $9,000. This retrace signals that bulls over extended themselves during yesterday’s rally and may mean that further losses are imminent.

Importantly, BTC has been able to hold above a key support level despite its massive retrace, which may mean that it will be able to extend its momentum in the near-future.

Big Cheds, a popular crypto analyst on Twitter, spoke about this in a recent tweet, saying:

“$BTC #Bitcoin daily – what’s crazy is even with a near $1500 pull back the price is STILL above the upper BB as I send this tweet.”

BTC May Retrace Towards $8,500 Before Rally Continues

Bitcoin may drop lower in the near-term before it begins climbing higher, with one popular analyst group targeting $8,500 as a good entry point for fresh spot and long positions. Trading Room spoke about this in a recent tweet, pointing to the charts seen below.

“Buying #Bitcoin. Conservative Entry. Trying to Scalp #BTCUSD 8850-9000 Area aggressively but also looking for a safer re-entry for CASH Portfolio. 8525-8775 zone offers a better & safer. Area to enter $BTC. Interim Target 9750. If Breakout,Target 1 – 12000,” he explained.

See more

Buying Conservative Entry Trying to Scalp 8850-9000 Area aggressively but also looking for a safer re-entry for CASH Portfolio 8525-8775 zone offers a better & safer Area to enter Interim Target 9750 If Breakout,Target 1 – 12000 — Trading Room (@tradingroomapp)

 

The coming few hours and days may clarify the long-term importance of this latest movement, as an ability for BTC to hold above its near-term support levels may allow bulls to further extend their upwards momentum.

Featured image from Shutterstock.